Indicators of CAMELS rating against each component
| Component | Indicators |
|---|---|
| Capital adequacy (C) |
|
| Asset quality (A) |
|
| Management soundness (M) |
|
| Earnings ability (E) |
|
| Liquidity (L) |
|
| Sensitivity to market risk (S) |
|
| Component | Indicators |
|---|---|
| Capital adequacy (C) | Total Capital/Total Assets (TC/TA) Total Equity/Total Assets (TE/TA) Capital adequacy ratio (CAR) Total Debt/Total Assets (TD/TA) Govt. Securities/Total Investment (GS/TI) |
| Asset quality (A) | Loan Loss Provision/Total Loan (LL/TL) Fixed Assets/Total Assets (FA/TA) Total Loan/Total Assets (TL/TA) Non-Performing Loan/Total Loan (NPL/TL) Total Investment/Total Assets (TI/TA) |
| Management soundness (M) | Total deposits per branch (TDB) Net profit per employee (NPE) Funds Borrowed/Total Assets (FB/TA) Operating Income/Operating Expenses (OI/OE) Total Loan/Total Deposits (TL/TD) |
| Earnings ability (E) | Return on Assets (ROA) Return on Equity (ROE) Operating Profit/Total Assets (OP/TA) Net Interest Income/Total Assets (Net II/TA) Non-interest Income/Total Assets (Non-II/TA) |
| Liquidity (L) | Liquid Assets/Total Assets (LA/TA) Liquid Assets/Total Deposits (LA/TD) Liquid Assets/Short-term Liabilities (LA/SL) Govt. Securities/Total Assets (GS/TA) |
| Sensitivity to market risk (S) | Interest Rate Risk (IRR) Equity Position Risk (EPR) Foreign Exchange Risk (FER) |
Source(s): Bangladesh Bank (2019)